JPYC Spiked to 37.6 Won on Upbit as South Korea Reviews Market Makers
The yen stablecoin opened at 12 won on Sept. 17 before rising sharply within an hour, exposing liquidity risks in cross-border stablecoin trading.
JPYC, a yen stablecoin, climbed from an opening price of 12 won to 37.6 won on Upbit within about an hour of its Sept. 17 listing, highlighting the liquidity risks that can emerge when stablecoins enter a new market.
The move pushed JPYC to roughly four times the value implied by its yen peg. The sharp gap reflected limited liquidity during the early trading period, when there were not enough orders near a reasonable price.
South Korea’s Financial Services Commission is now reviewing whether the country needs a formal crypto market-making system. FSC official Yoo Young-joon said the review would consider the need for mechanisms including market making.
South Korea’s Virtual Asset User Protection Act does not include a specific exemption for market-making activity, leaving firms exposed to market-manipulation rules when they provide liquidity. Any change would likely be considered alongside the country’s proposed Digital Asset Basic Act, which is intended to establish a broader regulatory framework for the crypto industry.
The review has not produced a decision to allow crypto market makers.
